Fed Kashkari believes there is room to lower the Intrerest Rate.

[Fed Kashkari believes there is room to lower interest rates] Minneapolis Fed President Kashkari said on Wednesday that the Fed has some room to lower short-term benchmark rates, but he did not reveal when policy might be eased. "I don't predict a recession," Kashkari said. "I have every reason to believe that the cooling trends we are seeing may continue and could be quite moderate." Kashkari noted that given the neutral federal funds rate is around 3%, "this suggests there is some room for rates to decline in the coming years." He also mentioned that challenges facing policy are becoming increasingly significant considering the evolution of the economy. He stated that inflation remains too high, but at the same time, the labor market shows some signs of cooling, thus the Fed is facing a tricky situation trying to balance between the dual mandate.